27 Oct 2011

NZOG share price seen as ridiculously low

7:15 pm on 27 October 2011

New Zealand Oil & Gas Ltd chairman Tony Radford says the industry the company operates in is out of favour with investors and the company's share price is suffering.

Mr Radford told shareholders at the annual meeting in Wellington on Wednesday that the company's share price has languished due to the Pike River coalmine disaster, the downgrading of reserves at the Tui oilfield and the turmoil on financial markets.

Mr Radford says based on the company's current share price, its market capitalisation is below the value of its Kupe investment alone.

The energy explorer has $154.7 million in cash, and its operating revenue for the September quarter was $29.5 million.

"Events over the last 12 months combined with market sentiment assuredly have knocked the share price badly, in fact to ridiculously low levels," Mr Radford said.

NZ Oil & Gas is in the process of recruiting a chief executive to succeed David Salisbury who leaves in December after four years in the role.